Let x1, x2, ⋯,xn be n observations, and let ¯x be their arithmetic mean and σ2 be the variance.
Statement – 1: Variance of 2x1,2x2,⋯,2xn is 4σ2
Statement – 2: Arithmetic mean 2x1,2x2,⋯,2xn is 4¯x
Statement – 1 is true, statement – 2 is false.
If each observation is multiplied by k, mean gets multiplied by k and variance gets multiplied by k2. Hence the new mean should be 2¯x and new variance should be 22σ2 .
So statement –I s true and statement – 2 is false.